1. At a Glance – The “Abhi Zinda Hai” Cement Story
Orient Cement is currently trading at ₹165, with a market cap of ₹3,394 crore, down 50% YoY and 31% in the last 6 months—basically the stock has gone through more emotional phases than a Bollywood breakup. Yet, in Q3 FY26, the company delivered a 208% YoY jump in quarterly PAT, while operating margins expanded sharply to 14%, helped by cost control, power efficiency, and the comfort blanket of new parent Ambuja Cements.
At 10.4× trailing P/E and EV/EBITDA of 6.1×, Orient Cement is priced like a neglected stepchild—despite now being majority-owned (72.66%) by Ambuja. Debt is almost gone (₹72 crore, D/E 0.04), interest coverage is a comfy 25.8×, and dividend yield sits at 0.30%.
So the question is obvious:
Is the market missing a post-acquisition rerating, or is this stock already mentally merged and forgotten?
2. Introduction – From Birla Family Album to Adani Cement Group
Founded in 1979 and demerged in 2012 from Orient Paper & Industries, Orient Cement lived a quiet mid-cap cement life—regional presence, average growth, no drama. Then came 2025.
In April 2025, Ambuja Cements completed acquisition of 72.66% stake (46.66% via promoter purchase + 26% open offer). CARE Ratings promptly upgraded Orient Cement’s long-term rating to CARE AAA (Stable)—because nothing says “financial stability” like a rich parent.
By December 2025, the board approved amalgamation into Ambuja (33 Ambuja shares for every 100 Orient shares). Translation?
Orient Cement is no longer an independent cement company—it’s a strategic
asset waiting to be absorbed.
Now ask yourself:
Do you analyse it like a standalone value stock or a merger-arb footnote?
3. Business Model – WTF Do They Even Do? (Cement, Obviously)
Orient Cement manufactures and sells cement from three integrated locations:
- Devapur (Telangana)
- Chittapur (Karnataka)
- Jalgaon (Maharashtra)
Installed capacity:
- Clinker: 5.5 MTPA
- Grinding cement: 8.5 MTPA
Post-acquisition, Orient signed Master Supply & Service Agreements with Ambuja and ACC. Result?
- Orient manufactures
- Ambuja/ACC market
- Branding premium flows downstream
This is classic Adani Cement playbook: centralize marketing, decentralize manufacturing. Orient becomes a backend efficiency engine, not a brand builder.
Lazy investor explanation:
“Orient makes cement, Ambuja sells it, shareholders wait for the swap.”
4. Financials Overview – Q3 FY26 Scorecard (Figures in ₹ Crore)
Quarterly Comparison Table
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 636 | 643 | 643 | -1.1% | -1.1% |
| EBITDA | 90 | 58 | 165 | +55% | -45% |
| PAT | 28 | 10 | 49 | +208% | -43% |
| EPS (₹) | 1.35 | 0.49 | 2.39 | +176% | -43% |
Annualised EPS (Q1–Q3 avg): ≈ ₹15.8
Commentary:
Margins improved, volumes stayed meh, profits bounced because costs behaved for once. Cement companies don’t need growth—they need discipline.
So tell me:
Would you
